Current Affairs · · GS2 · Social Justice

Social security boards for gig, unorganised workers set up amid concerns

The Labour Ministry has set up the National Social Security Board for Unorganised Workers and a Board for Gig and Platform Workers under the Code on Social Security, 2020. A Hindu editorial welcomes the step but warns of Centre-dominated membership, weak State role and thin union representation. Registration alone, it says, does not guarantee benefits.

Event date:

REq1
  1. Note1 / 5

    WHY IN NEWS?

    • The Union Labour Ministry constituted two boards under the Code on Social Security, 2020, which came into force in November 2025.
    • One is the National Social Security Board for Unorganised Workers.
    • The other is a Board for Gig and Platform Workers.
    • They will recommend and monitor welfare schemes for these workers.
    • A Hindu editorial raises concerns about centralisation, State participation and stakeholder representation.
  2. Note2 / 5

    WHAT THE CODE PROVIDES FOR GIG WORKERS

    • Recognition: Gig and platform workers are legally defined for the first time.
    • Aggregator contribution: Platforms pay 1–2% of annual turnover into a social security fund, capped at 5% of what they pay gig workers.
    • Schemes: The Centre can frame schemes on life and disability cover, accident insurance, health, maternity and old-age protection.
    • Registration: Workers register on the e-Shram portal; over 30 crore unorganised workers were registered by mid-2025.
  3. Note3 / 5

    KEY CONCEPTS

    1. Who is an unorganised worker?

    A worker in the informal sector or without social security, such as home-based, self-employed or wage workers in small units.

    1. What is a social protection floor?

    ILO Recommendation No. 202 (2012) calls for basic guarantees for all: essential health care and income security across life — childhood, working age and old age.

    1. What do the Directive Principles say?

    Articles 38, 39(e), 41, 42 and 43 direct the State to secure social justice, fair work conditions, public assistance and a living wage.

    1. What is e-Shram?

    A national database of unorganised workers, giving each a unique number to link them to welfare schemes.

  4. Note4 / 5

    THE CONCERNS

    These points are the editorial's argument.

    • Centralisation: The Centre nominates most members, limiting participation.
    • Weak federalism: States, which run many welfare schemes, have a small voice.
    • Unions sidelined: Independent worker organisations may be under-represented.
    • Coverage vs adequacy: Being registered or "covered" does not mean real benefits for every risk.
    • Gig risks: Algorithmic control, unstable pay and sudden deactivation remain unaddressed.
    • Women and migrants: Maternity protection and portable benefits remain patchy.
  5. Note5 / 5

    WAY FORWARD

    These are the editorial's suggestions, not adopted policy.

    • Make boards representative: Include States, unions, women and migrant workers, following the ILO's tripartite model.
    • Build a floor: Universal health, pension, maternity and disability cover.
    • Collect aggregator contributions and run funds transparently.
    • Make benefits portable by linking e-Shram with other welfare databases.
    • Regulate algorithms: Ensure transparency and grievance redress, as Spain's 2021 "Rider Law" attempts.
    • Measure outcomes: Track benefits received, not just registrations.

Sources

Syllabus

PaperSubjectSub-topic
GS2Social JusticeWelfare of vulnerable sections, social justice, statutory bodies
GS3EconomyEmployment, gig economy
PrelimsSocial JusticeCode on Social Security 2020, e-Shram, aggregator contribution, ILO social protection floors

Topics

IndustryDPSPGovernance

Practice questions

  1. Under the Code on Social Security, 2020, aggregators must contribute to a social security fund:

    1. 5% of profits
    2. 1–2% of annual turnover, capped at 5% of amounts paid to gig workers
    3. A flat ₹1,000 per worker
    4. Nothing
    Show answer

    Answer: B. It funds schemes for gig and platform workers.

    Difficulty: medium · statement

  2. ILO Recommendation No. 202 concerns:

    1. Child labour
    2. National social protection floors
    3. Forced labour
    4. Domestic workers
    Show answer

    Answer: B. It was adopted in 2012.

    Difficulty: medium · statement

  3. e-Shram is a:

    1. Pension scheme
    2. National database of unorganised workers
    3. Skill training portal
    4. Health insurance scheme
    Show answer

    Answer: B. It assigns each worker a unique number.

    Difficulty: medium · statement

Mains practice

Answer-writing practice on this article. Attempt it first, then open the hints.

  1. GS2 · 150 words

    "Legal recognition of gig workers is a first step, not social security itself." Discuss with reference to the Code on Social Security, 2020.

    Show hints
    1. Boards, aggregator contribution
    2. e-Shram
    3. coverage vs adequacy
    4. algorithmic control, federalism
    5. ILO floors.